Archive for online gold trading

Following last Friday’s strong performance by gold which saw the precious metal almost reach $1630 per ounce on the day it’s been no surprise to see the commodity fall back in early trading on the physical exchange with the price of gold twice basing in the $1610 per ounce region before starting to climb higher once again. And with turmoil once again returning to the markets gold it is no surprise to see gold once again return to its safe haven status.

With a good platform of support in the $1520 price area gold will now be looking to test resistance, first at $1620-$1625 before once again attacking the $1660 region and beyond. For intraday gold traders Hawkeye is invaluable, not only because of its ability to look at both price and volume in multiple time frames but with the roadkill indicator the software is able to give gold traders early and accurate entry signals based on volume price analysis. When this is coupled with the optimal tick charts from the gear changer this gives gold traders the powerful edge they need to succeed.

A hugely positive day for gold bulls today as the precious metal found some very strong momentum breaking through its recent sideways congestion. The strong platform of support in the $1520 per ounce price area provided the springboard and with the price of gold breaking through the psychological $1600 per ounce price point we can now expect to see gold continue to move strongly higher. However, gold will first need to re-test the strong resistance in the $1635 per ounce region which extends through to $1688 per ounce. In order to break through this region we need to see sustained buying on our Hawkeye charts which should then give the precious metal the necessary momentum to reverse its recent downwards trend. So whilst today’s strong move higher is a positive sign gold still has some technical obstacles to overcome.

From a fundamental perspective this move higher is hardly a great surprise given this week’s dismal performance by the markets which culminated in appalling non farm payroll numbers from the US earlier and yet more poor data in Europe. And all this against the ongoing shambles of the eurozone crisis. It is therefore no great surprise to see traders and investors simply give up and return to the ultimate safe haven that is gold.

The recent hard sell off in gold which started on 29th February when the price fell over $100 has been attributed to a number of things, including hedge funds taking profits as well as a strengthening US dollar.

Since then the price of gold has continued to fall at a steady pace despite the problems in the eurozone. This has surprised many traders who would have expected gold to rally in such turbulent times.

However, this general sell off has also been mirrored across the market with just about every asset class selling off in the past few weeks. The old adage of “sell in May and go away” has never seemed so appropriate.

But what of the future and has the recent pullback in the gold price simply been as excuse for many to buy back into this market?

Looking at our daily chart for the June Comex contract this would not appear to be the case as the trend down since early March looks set to continue for a while longer. This is confirmed by our Hawkeye indicators which are all still firmly red. However, gold bulls can take some comfort from this chart for two reasons. First we have two support pivots at the $1530 price point and second the red trend on the chart has actually started to flatten, suggesting that the gold price may be preparing to enter a period of sideways congestion. However, whatever happens in the gold market all will be revealed on our daily gold chart.

If you would like to learn more about my gold analysis and the trading tools I use just drop me an email at anna@hawkeyetraders.com

Since our last look at the spot gold price on 26th January when many so “experts” were predicting an imminent price collapse the metal appears to have regained its mojo and is trading at time of writing at $1402 per ounce and will soon be looking to re-test the $1420 resistance area in due course. You can find a more detailed technical analysis for both gold and silver on my annacoulling personal blog, where you will also find analysis for both the forex and equity markets. Happy trading!

The short term bearish picture for the spot gold price continued this week as the precious metal ends the year on a muted note following several months of sustained gains as it consolidated in the $1375 to $1425 per ounce region. Gold trading this week has been characterised by the metal trading below the shorter term moving averages but finding support from the 40 day moving average immediately below and indeed this has been a feature of both yesterday’s and today’s trading. However, one technical signal that cannot be ignored is the crossing of the 9 day moving average below the 14 day moving average which is giving us a bear cross signal as a result and which may indeed see the price of gold slide further in thin volumes next week as we run up to Christmas. Despite this short term bearishness on the daily gold chart, the longer term picture remains firmly bullish and indeed Goldman Sach’s forecast for gold aligns with my own, which is that we can expect to see gold prices continue firmly higher next year towards an eventual target of around $1647 per ounce. In fact Goldman’s forecast is for $1700 per ounce by 2012.

The key levels on the daily spot gold chart are firmly established at $1325, $1350 and the current price level of the 40 day moving average at $1374, all of which may come into play in the next few weeks as we build towards a breakout beyond the all time high of $1430.94 achieved early in December.